Neco 2022 Data Processing Question 30

A company needs to store 10 TB of data and is evaluating two alternatives. **Option 1 - On‑premise server** - Purchase price: ₦2 500 000 (one‑time). - Expected lifespan: 5 years. - Annual maintenance cost: 10 % of the purchase price. - Annual electricity cost: ₦150 000. **Option 2 - Cloud subscription** - Monthly fee: ₦120 000 (unlimited storage). - No other recurring costs. (a) Compute the total cash outlay for each option over a 5‑year period. (b) Assuming the on‑premise costs are incurred as a one‑time purchase followed by equal monthly charges for maintenance and electricity (i.e. \((250 000+150 000)/12\) per month), determine after how many months the cumulative cost of the cloud subscription equals that of the on‑premise solution (round up to the nearest whole month).